Definition of Business • In today’s world, there is a lot of competition for jobs. One good option for educated and trained people is self-employment. • But to become self-employed, a person needs to prepare well by getting the right education and training in their chosen field. • A business means being busy in an activity where a person or an organization earns money. • It is a regular activity where money is made by producing, buying, or selling products or services. It is a commercial activity done to earn profit. • A business can be small, owned by one person or their family. The profit or loss is shared between them. Examples of small businesses are selling flowers grown on their own farms, running food stalls or cafés in the local market, or selling ready-made clothes in the local area. • There are also large businesses that have branches across the country or in other countries. In these, profits are shared among the owners and sometimes with the employees. Examples include pizza chains or ready-made clothing brands.
Types of Business • There are different types of businesses. Let us discuss some of them:
Manufacturing Business • This business buys products and uses them as raw materials to make new products. It combines raw materials, workers, and machines to make goods that are sold to customers. Service Business • This business provides products that you cannot touch (intangible products). These include services like skills, knowledge, and advice. Examples: Salons, Repair Shops, Schools, Banks, Accounting Firms, Law Firms. Merchandising Business • This business buys products in bulk (wholesale) and sells them to customers at a higher price (retail). It is also called a “buy and sell” business. The product is not changed before selling. Examples: Grocery Stores, Convenience Stores, Distributors. Hybrid Business • This type of business includes more than one kind of business activity. For example, a restaurant: o Cooks meals (manufacturing) o Sells drinks (merchandising) o Takes orders and serves food (service) • Even if a business does many things, it is grouped by its main activity. A restaurant is usually considered a service business because it mainly serves food.
Be the first to comment